Everything you need to know about
New York state sales and use tax.
What is the sales tax in New York?
Taxes in New York are destination-based, meaning the sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of sales tax rates in NY by state, county, city and special district, use our easy New York sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate sales tax totals.
What is the use tax in New York?
The New York state use tax rate is the same as the state, county, city and special district rates.
If you reside in NY, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay sales or use tax to New York?
In general, a business must collect and remit all applicable sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
New York says that an out-of-state seller is required to collect tax if they can be defined as a "vendor". New York has certain additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in New York, you can usually get free help by contacting the New York Department of Taxation. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in New York. Click here for listing of recommended resources.
Special rules applying to sales and use taxes in New York
- Shipping is taxable.
- Finance charges are exempt from sales tax.
- Clothing is tax exempt in certain jurisdictions at specific dollar values. For more information, check out our special New York State clothing exemptions table at http://www.zip2tax.com/z2t_services.asp#ny_clothing.
- Sales tax holidays are not planned for this state .
Since New York legislators can vote to change sales and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of NY state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of sales tax jurisdictions.